Property prices across London’s prime housing markets continued to fall in the run-up to the EU referendum, with further declines anticipated in the coming months, according to a new report.
The latest research from international real estate adviser, Savills, shows that pre-referendum uncertainty triggered marginal price falls in prime housing markets of London in the second quarter of this year.
A -0.2% decline in the three month period prior to the referendum left average prime London values down -0.7% year-on-year, and -1.4% below their pre December 2014 level, when stamp duty rates on high value homes were increased.
Falls were most pronounced in prime central London, where prices dropped by -1.4% in the quarter. This left values in London’s most exclusive markets on average -3.9% down year on year and -8.0% below their Q3 2014 peak.
“There have been conflicting signals in the market in the period post referendum, which suggests the impact of a vote to leave the EU will only become clear over coming months as the market finds its level,” said Lucian Cook, head of UK residential research at Savills.
He added: “Falls in sterling have prompted some international buyers to re-enter the market, while there has also been a fair share of speculative bids from those hoping to secure a bargain. Against this context, sellers have generally taken a pragmatic approach around pricing without having to slash their expectations.
“Prime regional markets are at a different stage in their cycle, having been slower to recover peak 2007 values, and therefore appear to have been less affected by pre referendum uncertainty.”